Ola Electric gets board nod to raise ₹1,500 crore through securities

The EV maker said its board has approved raising up to Rs 1,500 crore through shares or convertible securities as part of efforts to strengthen its financial position

Ola Electric Mobility's board has approved raising up to ₹1,500 crore through an issue of securities, the company said in an exchange filing on Saturday.

 

The Bengaluru-based electric vehicle manufacturer said the board has considered and approved a proposal to raise funds through the issue of shares or convertible securities, including warrants, via rights issue, qualified institutional placement, private placement, or any other mode permitted under applicable laws. The total amount to be raised will not exceed ₹1,500 crore.

 

The EV-maker did not disclose the reasons for raising the funds.

 

Earlier fund raising efforts

 

On May 22 this year, Ola Electric's board approved to raise ₹1,700 crore via the issuance of Non-Convertible Debentures (NCDs) or any other eligible debt securities.

 

 

The company also said it will raise funds through term loans, and working capital facilities.

 

"We would like to inform you that the Board of Directors of Ola Electric Mobility Limited ("the company"), at its meeting held today, Thursday, May 22, 2025, has inter-alia, considered and approved the proposal of fundraising by borrowing funds within the borrowing limits approved by the shareholders of the Company, by way of: (i) term loans, working capital facilities; or (ii) issuance of Non-Convertible Debentures (NCDs) or any other eligible debt securities, in one or more tranches, on a private placement basis or such other methods, as may be permitted under applicable laws," the company had said in a filing.

 

Why Ola Electric is focusing on fund raising

 

Founded in 2017, Ola Electric went public in August 2024, raising fresh equity. Since listing, the company has faced headwinds including market share erosion and regulatory queries, such as mismatches between claimed sales and vehicle registrations. The company’s market share has also slipped amid rising competition from auto majors such as Bajaj Auto and TVS Motor Company.

 

Ola Electric posted a deeper net loss for the April-June quarter (Q1) of 2025–26 (FY26), as the electric scooter maker contended with a sharp drop in revenue. The company reported a consolidated loss of ₹428 crore, widening 23 per cent from ₹347 crore in the same period a year earlier.